Not if anyone wants the market to stabilize.
Dick Morris and Eileen McGann, Obama Must Forsake Capital Gains Tax Hike To Stabilize Markets:
“Wall Street is engaged in a test of wills with President-elect Barack Obama. The market, which dropped one thousand points last week, is not going to recover until the next president forswears his plans to raise the capital gains tax. In our book Fleeced we predicted that the Dow would crash after an Obama election because of fears that he will raise taxes, particularly the tax on capital gains.
As we argued in Fleeced, even an unsophisticated investor realizes that if he sells now, he will only have to give the government 15% of his profits whereas if he waits until Obama takes office, he may have to fork over an additional five to fifteen percent of the profits to Washington. Any moron can tell it makes sense to sell before the tax hike kicks in. And since these increases are usually retroactive, investors will take care to sell ASAP rather than wait.
So Obama is in the position of asking people to have confidence in the markets, even though he proposes to as much as double their taxes should they succeed.
The collision course between Obama’s leftist ideology and the reality of the markets could not be more striking.” (read more at above link)
So, will Obama choose leftist ideology or face the reality of economics? We shall see. Whatever his decision, it will be a good indication of his future actions in other areas. Govern from the center? Or govern as the leftist he is?
Really, it boils down to this: Will Obama forsake common sense to satisfy the likes of MoveOn.org?